The dollar traded near a three-week high against its major rivals on Wednesday after strong US data bolstered expectations of a near-term rate hike by the Federal Reserve.
The Dollar index was little rose to 96.143 overnight, its highest since August 10. The greenback was lifted by the strongest consumer confidence index figure in 11-month high in August. Other data showed that house price growth moderated in June but still remaining strong.
Last Friday's comments by Fed Chair Janet Yellen had increased expectations the central bank could hike as early as September, and the markets will be keen on more data to see if the US economy is ready to withstand monetary tightening.
USD/JPY soared to a one-month high of 103.14 on Tuesday, up from 100.500 at the start of the week. EUR/USD traded around 1.1148, hovering near a three-week low of 1.1133 touched on Tuesday.
Focus will be on Friday's US August non-farm payrolls report but forex investors will first digest the ADP employment data and the Chicago purchasing managers' index (PMI) due later on Wednesday.
